Doing Direct Selling Business In Thailand

Thailand Overview • The Kingdom of Thailand is centrally located

within Southeast Asia and shares borders with Myanmar, Laos, Cambodia and Malaysia. With population of over 68 million

• The climate generally is sunny, tropical, and very humid, with a rainy season from June to October.

• Official language: Thai

• Religion: Majority Buddhist

Economy Overview

• Exchange rate:

– US$1 = THB 32.92

– Euro 1 = THB 40.85

– Yen 100 = THB 28.01

• The rate of inflation in Thailand for 2014 is forecast as 2.2% by the Bank of Thailand in its Inflation. Report dated June 2014. Inflation rates for 2013, 2012, and 2011 were 2.2%, 3.0%, and 3.8% respectively.

• Economic growth current rate an estimation of approximately 1% per annum for 2014, and a per capita GDP (PPP) of about USD 5,779 (at the end of 2013).

Direct Selling Overview in Thailand Direct selling • Average 5-7 % growth annually.

• Sales of THB71 billion in 2014.

• Popular categories are personal care, cosmetics and dietary supplements.

• Beauty and personal care category is projected to increase from $24,605.0 in 2014 to $26,170.1 in 2015 (6.36% inc.);

• Consumer healthcare is projected to increase from $16,176.8 in 2014 to $17,358.6 in 2015 (THB million) (7.31% inc.).

(“Direct Selling in Thailand”, Euromonitor International, May 2015).

Sett

ing

up

a B

usi

ne

ss

Typ

e o

f B

usi

ne

ss R

egi

stra

tio

n

Taxa

tio

n

Pro

du

ct L

ice

nse

Dir

ect

Se

llin

g Li

cen

se

Cu

sto

m F

acili

tati

on

Lab

or

Issu

e

Doing Business in Thailand

• Partnership • Limited

Company • Other Forms of

Corporate • Regional

operating HQ

Reserve Company Name

Deposit Paid-In Capital

Obtain Corporate Seal

Register the Company

Tax Calculation

Tax filling and payment

• Corporate Income Tax

• Value Added Tax

• Personal Income Tax

• Other Taxes

Submit Document

Custom Clearance

Port Handling

Register for Direct Selling

Licensing

• Compensation Plan

• Product List • Company

Profile

• Labour Protection

• Social Security

Direct Selling License

FDA

• Cosmetics • Food

Supplement • Wellness

TISI (Thai Industrial

Standards Institutes)

• Electronic Devices

• Other Devices

Register for Product

Licensing

Department of Business Development Ministry of Commerce

Revenue Department

Food and Drug Administration

Thai Industrial Standards Institutes

Office of Consumer Protection Board

Custom Facilitation

Department of Labour Protection and

Welfare

Law and Regulation • Foreign Business Act, B.E. 2542 (1999)

• Direct Selling and Direct Marketing Act, B.E. 2545 (2002)

• Consumer Protection Act, B.E. 2522 (1979)

• Cosmetic Act, B.E. 2535 (1992)

• The Food Act, B.E. 2522 (1979)

• Industrial Product Standards Act, B.E. 2548 (2005)

• Labour Protection Act, B.E. 2541 (1998)

Government Contact Lists • Department of Business Development, DBD

Address : 44/100 Nonthaburi 1 Road, Bangkrasor, Muang Nonthaburi 11000 Thailand

Tel : Call Center 1570

Fax : +662- 547- 4459

E-mail : computer@dbd.go.th

Website : http://www.dbd.go.th/dbdweb_en/main.php?filename=index

• The Revenue Department Address : 90 Soi Phaholyothin7, Phaholyothin Road, Bangkok, 10400

Tel : +662- 272- 8000 or 1161

Website : http://www.rd.go.th/publish/index_eng.html

Contact Lists • Food and Drug Administration

Address : 88/24 , Tiwanon Road, Muang Nonthaburi 11000 Thailand

Tel: +662- 590 -7000

Website: http://www.fda.moph.go.th/fda_eng/frontend/theme_1/index.php

Cosmetic Control Division

Tel: 66- 2590-7441, 66- 2590-7278

E-mail: cosmetic@fda.moph.go.th

Food Control Division

Tel: 66- 2590-7186, 66- 2590-7189

Fax: 66-2591-8460

E-mail: food@fda.moph.go.th

Contact Lists • Food and Drug Administration

Address : 88/24 , Tiwanon Road, Muang Nonthaburi 11000 Thailand

Tel: +662- 590 -7000

Website: http://www.fda.moph.go.th/fda_eng/frontend/theme_1/index.php

Drug Control Division

Tel: 66- 2590-7160, 66- 2590-7171

Fax: 66-2591-8390, 66-2591-8489, 66-2590-7170

E-mail: drug@fda.moph.go.th

Medical Device Control Division

Tel: 66- 2590-7244

Fax: 66-2591-8445

E-mail: mcdc1988@fda.moph.go.th

• Drug Control Division

• Food Control Division

• Cosmetic Control Division

• Medical Device Control Division

• Hazardous Substance Control Group

• Narcotic Control Division

Thai Food and Drug Administration

Product Registration Process (Personal Care)

Using Online Application

to register whole process to get product license

http://nct.fda.moph.go.th/LgtDownload/updatepath.jsp

Product Registration Process (Personal Care - Register Online)

• login User provided 1 account per company.

• 7 days to consider and approve product registration

• Required information – Product Name

– Product Type

– Master Formula

– Importer

– Distributor

– Product of Origin

Product Registration Process (Diet Supplement)

• Apply for queue via website or phone call

http://iodinethailand.fda.moph.go.th/foodbooking/

• Prepare document – Import document

– ID or Passport/ Home certificate/ and work permit

– Company registration

– Copy of nationality of Co.,Ltd.

– Home certificate of importer and warehouse

– Warehouse rental contract and owner’s ID.

– Rental space diagram

– Attorney letter

• Register process at One Stop Service Center (OSSC)

One Stop Service Center (OSSC)

• Consultant Service

• Product Registration Division

• Financial Division

Strength and Weakness

• Strength

– Sufficient Information

– Manageable time for clients

• Weakness – 1 language in Thai available

Government Contact Lists • Thai Industrial Standards Institute: TISI

Address : 75/42, Rama VI Road, Ratchathewi , Bangkok 10400 Thailand

Tel: +662-202-3300

Fax +662- 202- 3415

E-mail : thaistan@tisi.go.th

Website : http://www.tisi.go.th/

• Office of the Consumer Protection Board Address : The Government Complex Commemorating His Majesty the King’ 80th

Birthday Anniversary, 5 December , B.E. 2550 ( 2007 ) Building B, Floor 5, Chaengwattana, Thung Song Hong, Laksi, Bangkok, Thailand, 10220

Tel : OCPB Hotline 1166

E-mail : consumer@ocpb.go.th

Website: http://www.ocpb.go.th

Government Contact Lists • The Customs Department

Address : Sunthornkosa Road, Klong Toey Bangkok, 10110. THAILAND.

Tel: +662- 667- 6000, +662- 66-7 7000

Fax: +662- 667- 7767

E-mail : 1164@customs.go.th

Website: http://www.customs.go.th/

• Department of Labour Protection and Welfare Address : Mitrmitree Rd. ,Din Deang District, Bangkok 10400

Tel : +662 -245- 4310-4, Call center 1546

Fax : +662 -245- 8229

E-mail : info@labour.mail.go.th

Website: http://www.labour.go.th/en/

TDSA Contact Information Thai Direct Selling Association

Address : The Paradise Village

48/49 Moo 1, Soi Chaengwattana 14,

Chaengwattana Road, Tungsonghong, Laksi,

Bangkok 10210

Tel: +(66) 2574 3208

Fax: +(66) 2574 3209

Website: www.tdsa.org

E-mail : sukanda@tdsa.org

Thank you